ANNUAL BUDGET TABLES - MEDIUM TERM REVENUE AND EXPENDITURE

Water

1.7 ANNUAL BUDGET TABLES

The ten primary budget tables as required in terms of section 8 of the Municipal Budget and Reporting Regulations follow. These tables set out the municipality’s 2015/16 budget and MTREF. Each table is accompanied by explanatory notes on the facing page.

Description 2011/12 2012/13 2013/14

R thousands Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Financial Performance

Property rates 4,444,308 4,987,887 5,443,085 5,481,368 5,521,968 5,539,951 5,936,803 6,318,024 6,754,792 Serv ice charges 11,394,609 12,467,301 13,076,734 14,790,650 14,790,650 14,908,486 16,609,914 18,444,174 20,423,056 Inv estment rev enue 231,693 303,994 334,874 491,385 497,232 631,458 760,535 832,665 880,431 Transfers recognised - operational 1,858,822 2,026,005 2,191,385 2,584,010 2,640,964 2,678,934 2,640,037 2,716,409 2,950,312 Other ow n rev enue 2,999,188 3,237,800 3,377,436 3,377,962 3,344,142 3,367,047 3,586,997 3,785,992 3,994,413 Total Revenue (excluding capital transfers

and contributions)

20,928,620

23,022,987 24,423,514 26,725,375 26,794,956 27,125,876 29,534,286 32,097,263 35,003,004

Employ ee costs 6,576,030 6,021,630 6,893,729 7,353,431 7,412,240 7,050,122 7,970,603 8,594,817 9,245,349 Remuneration of councillors 84,752 84,713 94,721 93,026 93,026 97,186 98,554 103,569 108,927 Depreciation & asset impairment 1,549,385 1,695,052 1,740,969 1,990,225 1,998,044 1,945,875 2,145,381 2,208,123 2,370,208 Finance charges 872,091 942,081 857,206 1,177,331 1,177,331 1,313,832 1,427,941 1,476,014 1,507,353 Materials and bulk purchases 6,710,935 7,615,696 7,895,243 8,522,864 8,522,226 8,643,512 9,766,032 10,938,765 12,254,416 Transfers and grants 126,094 171,574 166,133 205,214 200,629 194,933 222,501 236,503 250,044 Other ex penditure 4,800,362 5,587,744 6,829,520 7,511,195 7,539,097 7,501,701 7,805,046 8,281,643 8,838,077 Total Expenditure 20,719,649 22,118,490 24,477,521 26,853,285 26,942,593 26,747,162 29,436,059 31,839,434 34,574,374 Surplus/(Deficit) 208,971 904,497 (54,007) (127,910) (147,637) 378,715 98,227 257,830 428,630 Transfers recognised - capital 1,550,919 1,631,745 2,041,011 3,377,740 3,406,939 3,308,319 3,564,953 3,682,317 3,891,048 Contributions recognised - capital & contributed assets – – – – – – – – – Surplus/(Deficit) after capital transfers &

contributions

1,759,890

2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679

Share of surplus/ (deficit) of associate – – – – – – – – – Surplus/(Deficit) for the year 1,759,890 2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679 Capital expenditure & funds sources

Capital expenditure 3,515,471 3,494,715 4,201,622 5,711,021 5,673,548 5,673,548 6,046,926 6,435,351 6,937,100 Transfers recognised - capital 1,550,919 1,631,745 2,041,011 3,377,740 3,406,939 3,308,319 3,564,953 3,682,317 3,891,048 Public contributions & donations – – – – – – – – – Borrow ing 1,000,000 – 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Internally generated funds 964,552 1,862,970 660,611 1,333,281 1,266,609 1,365,229 1,481,973 1,753,034 2,046,052 Total sources of capital funds 3,515,471 3,494,715 4,201,622 5,711,021 5,673,548 5,673,548 6,046,926 6,435,351 6,937,100 Financial position

Total current assets 11,244,179 11,503,561 13,163,816 12,999,432 12,172,435 12,298,610 12,756,504 13,254,016 13,841,750 Total non current assets 35,136,248 37,430,275 39,823,426 44,242,310 44,174,439 42,740,172 46,666,109 50,898,176 55,476,694 Total current liabilities 8,058,631 9,270,341 10,695,464 9,057,861 9,056,571 9,991,958 10,299,180 10,636,818 11,054,575 Total non current liabilities 12,965,746 12,133,811 12,775,090 12,631,338 12,631,338 12,925,108 12,871,968 12,872,272 12,862,720 Community w ealth/Equity 25,356,050 27,529,684 29,516,688 35,552,543 34,658,965 32,121,716 36,251,465 40,643,103 45,401,149 Cash flows

Net cash from (used) operating 4,609,681 4,215,923 5,041,836 5,277,879 4,869,356 3,902,618 5,957,494 6,010,555 6,511,750 Net cash from (used) inv esting (3,434,298) (2,897,684) (4,111,416) (5,676,732) (5,639,260) (5,644,480) (6,014,212) (6,403,549) (6,905,237) Net cash from (used) financing 576,074 (784,013) 369,562 24,697 69,483 38,862 (109,189) 21,644 12,381 Cash/cash equivalents at the year end 5,025,483 5,559,709 6,859,692 5,148,302 4,822,038 5,156,692 4,990,786 4,619,436 4,238,331 Cash backing/surplus reconciliation

Cash and inv estments av ailable 5,025,483 5,559,709 6,859,692 5,990,384 5,422,038 5,356,692 5,490,786 5,319,436 5,238,331 Application of cash and inv estments 3,186,428 4,352,587 5,558,711 3,570,867 3,792,144 4,593,150 4,599,409 4,306,500 4,083,646 Balance - surplus (shortfall) 1,839,055 1,207,122 1,300,981 2,419,517 1,629,894 763,543 891,377 1,012,936 1,154,684 Asset management

Asset register summary (WDV) 34,842,267 36,771,410 39,225,988 43,987,970 43,919,375 42,392,928 46,294,837 50,497,673 55,044,093 Depreciation & asset impairment 1,549,385 1,695,052 1,740,969 1,990,225 1,998,044 1,945,875 2,145,381 2,208,123 2,370,208 Renew al of Ex isting Assets 1,166,087 1,485,446 1,631,582 1,808,056 1,701,436 1,701,436 2,929,619 2,934,745 3,229,101 Repairs and Maintenance 1,821,525 2,311,701 2,483,448 3,101,050 3,071,121 3,137,329 3,152,219 3,388,292 3,645,758 Free services

Cost of Free Basic Serv ices prov ided 1,305,152 1,305,152 1,183,686 1,269,505 1,305,077 1,305,077 1,415,233 1,534,799 1,664,611 Rev enue cost of free serv ices prov ided 2,642,169 2,642,169 2,769,528 3,073,505 3,090,064 3,109,077 3,354,233 3,619,799 3,749,611 Households below minimum service level

Water: 74 74 80 75 75 73 72 77 80 Sanitation/sew erage: 235 235 202 190 190 172 186 182 180 Energy : 345 345 363 368 368 368 385 399 405 Refuse: – – – – – – – – –

2015/16 Medium Term Revenue &

Expenditure Framework Current Year 2014/15

ETH eThekwini - Table A1 Budget Summary

EXPLANATORY NOTES TO MBRR TABLE A1 – BUDGET SUMMARY

Table A1 is a budget summary and provides a concise overview of the City’s budget from all of the major financial perspectives (operating, capital expenditure, financial position, cash flow, and MFMA funding compliance). The table provides an overview of the amounts to be approved for operating performance, as well as the municipality’s commitment to eliminating basic service delivery backlogs.

Financial management reforms emphasises the importance of the municipal budget being funded. This requires the simultaneous assessment of the Financial Performance, Financial Position and Cash Flow Budgets, along with the Capital Budget. The Budget Summary provides the key information in this regard:

a. The operating surplus/deficit (after Total Expenditure) is positive over the MTREF b. Capital expenditure is balanced by capital funding sources, of which

i. Transfers recognized is reflected on the Financial Performance Budget;

ii. Borrowing is incorporated in the net cash from financing on the Cash Flow Budget

iii. Internally generated funds are financed from a combination of the current operating surplus and accumulated cash-backed surpluses from previous years.

Even though the Council places great emphasis on the financial sustainability of the municipality, this is not being done at the expense of services to the poor. The section of Free Services shows that the amount spent on Free Basic Services and the revenue cost of free services provided by the municipality continues to increase. In addition, the municipality continues to make good progress in addressing service delivery backlogs.

EXPLANATORY NOTES TO MBRR TABLE A2 – BUDGET PERFORMANCE (REVENUE AND EXPENDITURE BY STANDARD CLASSIFICATION)

Table A2 is a view of the budgeted financial performance in relation to revenue and expenditure per standard classification. The GFS standard classification divides the municipal services into 15 functional areas. Municipal revenue, operating expenditure and capital expenditure are then classified in terms of each of these functional areas which enable National Treasury to compile ‘whole of government’ reports.

As a general principle the revenues for the Trading Services should exceed their expenditures. The table highlights that this is the case for Electricity, Water and Waste water functions, but not the Waste management function.

Other functions that show a deficit between revenue and expenditure are being financed from rates revenues and other revenue sources

ETH eThekwini - Table A2 Budgeted Financial Performance (revenue and expenditure by standard classification) Standard Classification Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Revenue - Standard

Governance and administration 6,453,501 7,883,742 8,495,512 8,912,935 8,969,048 9,043,410 9,825,899 10,544,011 11,385,429 Ex ecutiv e and council 5,775 1,338 1,578 104,480 104,480 104,178 146,383 157,453 180,028 Budget and treasury office 6,204,142 7,644,733 8,252,307 8,555,653 8,611,766 8,674,734 9,403,292 10,098,611 10,895,324 Corporate serv ices 243,584 237,671 241,627 252,802 252,802 264,498 276,224 287,947 310,076 Community and public safety 1,172,769 639,096 738,870 1,702,260 1,779,635 1,693,428 1,979,179 1,981,779 1,971,218 Community and social serv ices 30,063 55,457 43,541 198,586 273,398 163,160 216,190 258,231 265,534 Sport and recreation 97,851 98,400 92,445 131,793 121,793 106,632 147,060 123,800 134,947 Public safety 136,419 125,037 256,026 127,387 134,850 98,714 107,100 108,476 112,823 Housing 851,754 286,830 249,669 1,163,244 1,168,343 1,243,767 1,429,345 1,405,301 1,374,819 Health 56,682 73,372 97,190 81,250 81,250 81,156 79,484 85,972 83,096 Economic and environmental services 994,528 1,073,587 1,078,202 1,306,799 1,301,380 1,295,193 1,681,955 1,660,026 1,810,706 Planning and dev elopment 212,639 221,632 207,076 218,733 208,988 206,086 276,077 251,080 326,122 Road transport 780,067 849,900 867,903 1,075,311 1,075,311 1,073,049 1,373,222 1,404,279 1,482,101 Env ironmental protection 1,822 2,054 3,224 12,755 17,081 16,058 32,656 4,668 2,484 Trading services 13,381,592 14,633,813 15,695,034 17,720,509 17,690,550 17,941,577 19,114,593 21,060,973 23,148,140 Electricity 8,756,686 9,778,172 9,945,531 11,104,079 11,094,079 11,217,951 12,365,480 13,763,541 15,229,159 Water 2,698,040 2,721,891 3,198,818 4,075,014 4,076,514 4,194,952 4,292,497 4,656,307 5,046,227 Waste w ater management 1,211,246 1,270,380 1,730,345 1,662,091 1,640,633 1,652,200 1,504,277 1,613,450 1,777,544 Waste management 715,620 863,370 820,340 879,325 879,325 876,474 952,339 1,027,675 1,095,210 Other 477,149 424,495 456,907 460,612 461,283 460,586 497,613 532,791 578,559 Total Revenue - Standard 22,479,539 24,654,732 26,464,526 30,103,115 30,201,895 30,434,195 33,099,239 35,779,580 38,894,053 Expenditure - Standard

Governance and administration 3,316,366 2,690,989 3,033,736 3,619,149 3,661,839 3,543,318 3,869,180 4,082,254 4,336,312 Ex ecutiv e and council 225,446 256,881 325,502 363,840 403,123 371,969 411,040 446,880 473,909 Budget and treasury office 2,103,975 1,400,464 1,383,659 1,724,690 1,715,415 1,729,980 1,899,204 1,994,826 2,111,338 Corporate serv ices 986,944 1,033,644 1,324,576 1,530,618 1,543,301 1,441,369 1,558,936 1,640,548 1,751,064 Community and public safety 2,914,758 3,963,951 4,866,371 4,618,749 4,703,463 4,640,925 4,990,518 5,347,880 5,717,077 Community and social serv ices 530,583 603,103 661,919 794,299 876,979 780,101 882,128 946,539 1,010,586 Sport and recreation 791,558 1,057,876 1,111,020 1,191,767 1,194,638 1,173,639 1,273,464 1,344,569 1,428,015 Public safety 980,710 1,291,999 1,537,524 1,505,243 1,505,824 1,521,167 1,640,685 1,763,166 1,891,236 Housing 311,428 686,361 1,188,661 847,133 850,527 926,762 891,900 976,539 1,048,954 Health 300,479 324,612 367,248 280,307 275,495 239,256 302,342 317,069 338,286 Economic and environmental services 2,120,320 2,418,621 2,652,677 2,866,646 2,840,430 2,818,895 3,174,257 3,296,235 3,509,570 Planning and dev elopment 544,601 695,311 737,077 851,461 837,508 781,675 884,800 898,279 977,600 Road transport 1,458,122 1,601,666 1,778,954 1,826,927 1,811,527 1,874,338 2,079,355 2,186,894 2,306,635 Env ironmental protection 117,597 121,644 136,646 188,259 191,395 162,882 210,103 211,062 225,335 Trading services 11,876,306 12,547,561 13,398,802 15,149,001 15,149,256 15,166,836 16,768,191 18,440,602 20,294,368 Electricity 7,632,213 7,929,664 8,036,765 9,471,504 9,471,504 9,334,681 10,505,654 11,686,187 13,012,915 Water 2,585,215 2,798,507 3,385,547 3,660,338 3,661,838 3,876,712 4,149,698 4,506,078 4,906,944 Waste w ater management 883,323 993,107 1,053,060 1,137,835 1,136,590 1,151,092 1,255,500 1,336,882 1,414,683 Waste management 775,556 826,282 923,430 879,325 879,325 804,351 857,338 911,454 959,826 Other 491,898 497,368 525,936 599,740 587,607 577,188 633,913 672,463 717,048 Total Expenditure - Standard 20,719,649 22,118,490 24,477,521 26,853,285 26,942,593 26,747,162 29,436,059 31,839,434 34,574,374 Surplus/(Deficit) for the year 1,759,890 2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679

Current Year 2014/15 2015/16 Medium Term Revenue &

Expenditure Framework

EXPLANATORY NOTES TO MBRR TABLE A3 – BUDGETED FINANCIAL PERFORMANCE (REVENUE AND EXPENDITURE BY MUNICIPAL VOTE)

Table A3 is a view of the budgeted financial performance in relation to the revenue and expenditure per municipal vote. This table facilitates the view of the budgeted operating performance in relation to the organizational structure of the City.

ETH eThekwini - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)

Vote Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Revenue by Vote

Vote 1 - Office of the City Manager 190,780 308,584 262,137 277,623 278,963 254,746 297,865 317,256 347,758 Vote 2 - Finance 6,874,210 7,892,593 8,509,911 8,773,666 8,829,779 8,897,486 9,633,198 10,339,390 11,155,859 Vote 3 - Gov ernance 3,365 4,703 4,146 2,774 2,774 2,753 2,893 4,804 3,162 Vote 4 - Corporate and Human Resources 21,404 2,184 11,276 12,860 12,860 11,790 14,793 14,052 14,755 Vote 5 - Economic Dev elopment & Planning 150,699 268,204 234,588 276,846 271,555 269,698 352,647 344,702 403,647 Vote 6- Community and Emergency Serv ices 105,430 170,388 163,364 344,014 416,289 289,861 385,217 402,290 416,722 Vote 7 - Human Settlements and Infrastructure 3,168,779 3,038,372 3,598,950 4,549,343 4,531,516 4,559,635 5,176,859 5,322,783 5,626,215 Vote 8- Electricity 8,732,946 9,749,704 9,922,052 11,073,940 11,063,940 11,187,751 12,336,000 13,731,815 15,195,007 Vote 9 - Water 2,698,040 2,721,891 3,198,818 4,075,014 4,076,514 4,194,952 4,292,497 4,656,307 5,046,227 Vote 10 - Formal Housing 66,561 84,860 114,183 268,177 268,177 316,074 121,358 125,321 126,101 Vote 11 - Markets 64,848 70,627 78,951 77,456 77,456 79,584 92,573 97,460 107,256 Vote 12- Airport 6,216 6,065 7,345 7,955 7,955 7,664 8,220 8,571 8,933 Vote 13 - Chief Albert Luthuli International Conv ertional Centre 243,376 165,676 174,878 162,328 167,725 167,725 176,411 185,590 196,032 Vote 14 - uShaka Marine World 152,885 170,880 183,926 201,120 196,394 194,474 208,707 229,239 246,378 Vote 15 - [NAME OF VOTE 15] – – – – – – – – – Total Revenue by Vote 22,479,539 24,654,732 26,464,525 30,103,115 30,201,895 30,434,195 33,099,239 35,779,580 38,894,053 Expenditure by Vote to be appropriated

Vote 1 - Office of the City Manager 1,235,714 1,456,880 1,516,422 1,396,299 1,429,694 1,455,730 1,575,795 1,678,914 1,812,227 Vote 2 - Finance 1,638,999 1,583,366 1,367,455 2,465,863 2,452,610 2,414,987 2,648,441 2,780,643 2,943,061 Vote 3 - Gov ernance 345,064 402,786 495,954 502,364 557,035 529,218 552,453 586,487 620,177 Vote 4 - Corporate and Human Resources 260,354 284,584 319,812 410,857 411,433 369,888 433,038 459,519 491,461 Vote 5 - Economic Dev elopment & Planning 682,341 631,225 865,744 972,858 946,269 920,078 1,011,448 1,050,953 1,095,402 Vote 6 - Community and Emergency Serv ices 1,854,919 2,072,826 2,288,800 2,460,510 2,547,648 2,372,026 2,686,679 2,881,660 3,074,904 Vote 7 - Human Settlements and Infrastructure 3,795,638 4,227,575 5,049,128 4,491,875 4,456,211 4,411,395 4,845,110 5,111,579 5,470,330 Vote 8 - Electricity 7,817,979 8,137,338 8,239,665 9,699,959 9,699,959 9,539,826 10,726,351 11,922,331 13,265,421 Vote 9 - Water 2,585,215 2,794,783 3,703,994 3,660,338 3,661,838 3,876,712 4,149,698 4,506,078 4,906,944 Vote 10 - Formal Housing 89,284 110,040 219,524 326,501 324,796 414,785 321,608 346,758 345,196 Vote 11 - Markets 40,296 42,085 46,132 61,535 61,534 57,045 66,433 70,325 75,158 Vote 12 - Airport 5,860 6,520 6,592 7,242 7,242 7,158 7,672 7,975 8,283 Vote 13 - Chief Albert Luthuli International Conv ertional Centre 174,369 166,681 145,850 160,821 156,333 156,333 173,289 185,138 195,872 Vote 14 - uShaka Marine World 193,616 201,800 212,448 236,264 229,990 221,978 238,045 251,075 269,936 Vote 15 - [NAME OF VOTE 15] – – – – – – – – – Total Expenditure by Vote 20,719,649 22,118,490 24,477,521 26,853,285 26,942,593 26,747,162 29,436,059 31,839,434 34,574,374 Surplus/(Deficit) for the year 1,759,890 2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679

Current Year 2014/15 2015/16 Medium Term Revenue &

Expenditure Framework

Section 1.4 provides explanatory details on the operating revenue framework.

ETH eThekwini - Table A4 Budgeted Financial Performance (revenue and expenditure)

Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Revenue By Source

Property rates 4,332,441 4,918,885 5,298,905 5,352,283 5,392,883 5,392,852 5,803,863 6,181,114 6,613,792 Property rates - penalties & collection charges 111,867 69,002 144,180 129,085 129,085 147,099 132,940 136,911 141,000 Serv ice charges - electricity rev enue 8,376,497 9,177,471 9,444,493 10,477,612 10,477,612 10,503,140 11,778,524 13,189,028 14,702,957 Serv ice charges - w ater rev enue 1,894,285 2,061,896 2,295,911 2,879,423 2,879,423 2,966,997 3,279,627 3,589,788 3,935,799 Serv ice charges - sanitation rev enue 635,928 661,402 726,846 776,193 776,193 792,471 855,076 922,624 995,509 Serv ice charges - refuse rev enue 405,204 412,249 472,656 513,927 513,927 509,202 550,024 588,012 625,563 Serv ice charges - other 82,694 154,283 136,828 143,495 143,495 136,676 146,662 154,721 163,228 Rental of facilities and equipment 494,955 507,383 532,028 451,237 451,237 453,350 483,003 507,170 539,020 Interest earned - ex ternal inv estments 231,693 303,994 334,874 491,385 497,232 631,458 760,535 832,665 880,431 Interest earned - outstanding debtors 92,526 112,689 143,037 114,629 114,629 155,800 163,249 171,242 179,366 Div idends receiv ed – – – –

Fines 129,165 110,926 248,511 113,756 113,756 78,864 83,499 88,389 93,568 Licences and permits 28,369 30,341 30,542 25,094 25,094 30,465 26,328 27,766 29,240 Agency serv ices 11,718 12,495 10,795 12,744 12,744 12,744 13,382 14,051 14,753 Transfers recognised - operational 1,858,822 2,026,005 2,191,385 2,584,010 2,640,964 2,678,934 2,640,037 2,716,409 2,950,312 Other rev enue 2,177,215 2,451,586 2,394,784 2,626,212 2,592,393 2,600,464 2,783,926 2,943,757 3,104,664 Gains on disposal of PPE 65,241 12,380 17,739 34,289 34,289 35,359 33,612 33,617 33,802 Total Revenue (excluding capital transfers

and contributions)

20,928,620

23,022,987 24,423,514 26,725,375 26,794,956 27,125,876 29,534,286 32,097,263 35,003,004

Expenditure By Type

Employ ee related costs 6,576,030 6,021,630 6,893,729 7,353,431 7,412,240 7,050,122 7,970,603 8,594,817 9,245,349 Remuneration of councillors 84,752 84,713 94,721 93,026 93,026 97,186 98,554 103,569 108,927 Debt impairment 394,630 1,064,847 1,618,726 569,329 569,329 572,692 644,931 684,010 726,487 Depreciation & asset impairment 1,549,385 1,695,052 1,740,969 1,990,225 1,998,044 1,945,875 2,145,381 2,208,123 2,370,208 Finance charges 872,091 942,081 857,206 1,177,331 1,177,331 1,313,832 1,427,941 1,476,014 1,507,353 Bulk purchases 6,666,970 7,557,474 7,839,588 8,520,259 8,519,622 8,640,349 9,760,765 10,933,310 12,248,703 Other materials 43,965 58,222 55,655 2,604 2,604 3,163 5,267 5,455 5,713 Contracted serv ices 2,873,398 2,839,675 3,285,131 3,713,755 3,740,191 3,773,509 3,830,531 4,121,865 4,435,301 Transfers and grants 126,094 171,574 166,133 205,214 200,629 194,933 222,501 236,503 250,044 Other ex penditure 1,525,020 1,680,791 1,925,007 3,227,845 3,229,292 3,155,005 3,329,298 3,475,476 3,675,993 Loss on disposal of PPE 7,314 2,431 656 265 285 496 286 292 295 Total Expenditure 20,719,649 22,118,490 24,477,521 26,853,285 26,942,593 26,747,162 29,436,059 31,839,434 34,574,374 Surplus/(Deficit) 208,971 904,497 (54,007) (127,910) (147,637) 378,715 98,227 257,830 428,630 Transfers recognised - capital 1,550,919 1,631,745 2,041,011 3,377,740 3,406,939 3,308,319 3,564,953 3,682,317 3,891,048 Contributions recognised - capital – – – – – – – – – Contributed assets

Surplus/(Deficit) after capital transfers &

contributions

1,759,890

2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679

Tax ation

Surplus/(Deficit) after taxation 1,759,890 2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679 Attributable to minorities

Surplus/(Deficit) attributable to municipality 1,759,890 2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679 Share of surplus/ (deficit) of associate

Surplus/(Deficit) for the year 1,759,890 2,536,242 1,987,004 3,249,830 3,259,302 3,687,033 3,663,180 3,940,146 4,319,679 2015/16 Medium Term Revenue &

Expenditure Framework Current Year 2014/15

ETH eThekwini - Table A5 Budgeted Capital Expenditure by vote, standard classification and funding

Vote Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Capital expenditure - Vote

Multi-year expenditure to be appropriated

Vote 1 - Office of the City Manager 73,863 9,317 133,808 260,111 289,411 289,411 234,000 245,000 257,000 Vote 2 - Finance 249,497 241,739 102,966 126,700 110,892 110,892 81,579 112,074 174,163 Vote 3 - Gov ernance 12,051 – 7,265 18,144 13,630 13,630 – – – Vote 4 - Corporate and Human Resources 2,333 2,077 4,468 500 460 460 – – – Vote 5 - Economic Dev elopment & Planning 84,221 363,535 147,019 157,952 168,180 168,180 227,643 257,152 344,290 Vote 6 - Community and Emergency Serv ices 65,364 130,242 122,504 274,659 292,898 292,898 287,072 412,178 587,832 Vote 7 - Human Settlements and Infrastructure 1,346,351 1,801,054 2,314,477 3,083,096 3,050,968 3,050,968 3,481,299 3,677,898 3,759,270 Vote 8 - Electricity 567,382 519,668 526,070 666,942 666,942 666,942 625,022 656,102 676,050 Vote 9 - Water 290,601 281,889 812,951 814,850 814,850 814,850 809,725 799,175 809,667 Vote 10 - Formal Housing 213,809 – 655 – – – – – – Vote 11 - Markets 1,927 7,915 3,746 2,880 2,680 2,680 14,407 9,500 18,000 Vote 12 - Airport 52 – 600 – 384 384 – – – Vote 13 - Chief Albert Luthuli International Conv ertional Centre – – – – – – – – – Vote 14 - uShaka Marine World – – – – – – – – – Vote 15 - [NAME OF VOTE 15] – – – – – – – – – Capital multi-year expenditure sub-total 2,907,451 3,357,436 4,176,529 5,405,834 5,411,294 5,411,294 5,760,747 6,169,079 6,626,272 Single-year expenditure to be appropriated

Vote 1 - Office of the City Manager 191,756 674 – 5,500 6,000 6,000 92,917 105,260 110,865 Vote 2 - Finance 75,880 147 – 53,968 53,968 53,968 31,307 24,366 12,942 Vote 3 - Gov ernance 5,299 – – 11,936 10,136 10,136 18,280 13,391 19,074 Vote 4 - Corporate and Human Resources 52,742 8 – 15,200 11,040 11,040 17,200 4,799 4,300 Vote 5 - Economic Dev elopment & Planning 40,322 442 – 8,365 8,365 8,365 3,031 5,770 2,620 Vote 6 - Community and Emergency Serv ices 4,914 67 – 18,100 18,100 18,100 8,949 7,839 3,610 Vote 7 - Human Settlements and Infrastructure 201,845 22,826 – 54,709 54,709 54,709 21,891 21,880 75,378 Vote 8 - Electricity – 86,429 – 11,915 11,915 11,915 11,400 10,050 15,050 Vote 9 - Water 2,374 603 – 27,350 27,350 27,350 3,466 4,944 – Vote 10 - Formal Housing 41 – – – – – – – – Vote 11 - Markets 587 81 – 200 200 200 – – – Vote 12 - Airport 52 – – – – – – – – Vote 13 - Chief Albert Luthuli International Conv ertional Centre 23,805 14,471 9,788 85,993 48,520 48,520 32,583 31,882 25,000 Vote 14 - uShaka Marine World 8,404 11,531 15,305 11,951 11,951 11,951 45,155 36,091 41,989 Vote 15 - [NAME OF VOTE 15] – – – – – – – – – Capital single-year expenditure sub-total 608,021 137,279 25,093 305,187 262,254 262,254 286,179 266,272 310,828 Total Capital Expenditure - Vote 3,515,471 3,494,715 4,201,622 5,711,021 5,673,548 5,673,548 6,046,926 6,435,351 6,937,100 Capital Expenditure - Standard

Governance and administration 394,569 253,961 248,507 492,059 331,453 331,453 241,283 253,975 321,044 Ex ecutiv e and council 22,086 9,991 133,808 295,691 23,766 23,766 18,280 13,391 19,074 Budget and treasury office 222,695 241,885 102,966 180,668 164,860 164,860 112,886 136,440 187,105 Corporate serv ices 149,788 2,085 11,733 15,700 142,828 142,828 110,117 104,144 114,865 Community and public safety 407,544 180,088 187,188 1,000,346 1,026,668 1,026,668 1,514,951 1,624,332 1,726,428 Community and social serv ices 21,503 72,163 46,160 154,387 168,461 168,461 166,484 298,880 471,931 Sport and recreation 43,381 6,550 45,674 22,994 22,994 22,994 21,913 33,976 32,376 Public safety 24,740 36,930 4,696 88,898 100,837 100,837 86,566 77,892 82,240 Housing 304,356 49,779 64,684 707,587 707,587 707,587 1,218,930 1,198,400 1,134,686 Health 13,564 14,666 25,974 26,480 26,789 26,789 21,058 15,184 5,195 Economic and environmental services 639,824 1,251,133 1,430,551 1,796,930 1,790,320 1,790,320 2,106,035 2,240,129 2,465,425 Planning and dev elopment 85,297 389,979 147,619 169,397 200,282 200,282 230,674 262,922 346,910 Road transport 553,070 861,154 1,282,932 1,627,533 1,590,038 1,590,038 1,875,361 1,977,207 2,118,515

Env ironmental protection 1,458 – – –

Trading services 2,038,159 1,801,536 2,306,537 2,323,742 2,461,756 2,461,756 2,092,512 2,239,442 2,339,215 Electricity 641,116 606,097 531,463 678,857 678,857 678,857 636,422 666,152 691,100 Water 183,067 282,492 812,951 842,200 842,200 842,200 813,191 804,119 809,667 Waste w ater management 987,093 773,215 822,062 700,750 845,851 845,851 558,701 642,900 692,921 Waste management 226,882 139,732 140,062 101,935 94,848 94,848 84,198 126,271 145,527 Other 35,375 7,997 28,839 97,944 63,351 63,351 92,145 77,473 84,989 Total Capital Expenditure - Standard 3,515,471 3,494,715 4,201,622 5,711,021 5,673,548 5,673,548 6,046,926 6,435,351 6,937,100 Funded by:

National Gov ernment 1,489,107 1,505,301 1,914,392 2,590,694 2,601,095 2,600,288 2,753,247 2,883,073 3,079,516 Prov incial Gov ernment 53,324 77,271 122,995 772,846 787,318 688,363 793,906 795,144 811,532

District Municipality –

Other transfers and grants 8,488 49,173 3,623 14,200 18,526 19,668 17,800 4,100 – Transfers recognised - capital 1,550,919 1,631,745 2,041,011 3,377,740 3,406,939 3,308,319 3,564,953 3,682,317 3,891,048

Public contributions & donations –

Borrowing 1,000,000 – 1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Internally generated funds 964,552 1,862,970 660,611 1,333,281 1,266,609 1,365,229 1,481,973 1,753,034 2,046,052 Total Capital Funding 3,515,471 3,494,715 4,201,622 5,711,021 5,673,548 5,673,548 6,046,926 6,435,351 6,937,100

2015/16 Medium Term Revenue &

Expenditure Framework Current Year 2014/15

EXPLANATORY NOTES TO TABLE A5 – BUDGETED CAPITAL EXPENDITURE BY VOTE, STANDARD CLASSIFICATION AND FUNDING SOURCE

Table A5 reflects the city’s capital programme in relation to capital expenditure by municipal vote (multi-year appropriations); capital expenditure by standard classification; and the funding sources necessary to fund the capital budget, including information on capital transfers from national and provincial departments. The MFMA provides that a municipality may approve multi-year or single-year capital budget appropriations. Budget appropriations for the two outer years are indicative allocations based on departmental plans as informed by the IDP and will be reviewed on an annual basis to assess the relevance of the expenditure in relation to the strategic objectives of the city. The capital programme is funded mainly from grants and transfers, borrowings and internally generated funds.

EXPLANATORY NOTES TO TABLE A6 – BUDGETED FINANCIAL POSITION

Table A6 is a consistent with international standards of good financial management practice, and improves understandability for councilors and management of the impact of the budget on the statement of financial position (balance sheet). This format presenting the statement of financial position is aligned to GRAP1, which is generally aligned to the international version which presents Assets less Liabilities as “accounting” Community Wealth. The order of items within each group illustrates items in order of liquidity; i.e. assets readily converted to cash, or liabilities immediately required to be met from cash, appear first.

Table A6 is supported by an extensive table of notes (Supporting Table SA3) providing a detailed analysis of the major components of a number of items, including:

· Call investments deposits;

· Consumer debtors;

· Property, plant and equipment;

· Trade and other payables;

· Provisions non-current;

· Changes in net assets; and

· Reserves

ETH eThekwini - Table A6 Budgeted Financial Position

Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 ASSETS

Current assets

Cash 783,420 1,066,519 1,067,314 1,460,929 1,298,833 1,296,164 1,192,131 1,089,292 990,983 Call inv estment deposits 4,874,465 4,897,900 6,149,940 5,400,000 5,000,000 5,000,000 5,200,000 5,300,000 5,400,000 Consumer debtors 2,564,131 2,924,428 2,879,048 3,235,276 2,965,165 2,970,792 3,188,743 3,514,803 3,892,256 Other debtors 2,725,639 2,234,786 2,576,289 2,548,502 2,554,292 2,746,367 2,877,061 3,036,832 3,230,160 Current portion of long-term receiv ables 13,207 95,912 101,603 76,140 76,140 7,282 7,427 7,576 7,727 Inv entory 283,317 284,016 389,622 278,585 278,005 278,005 291,142 305,513 320,624 Total current assets 11,244,179 11,503,561 13,163,816 12,999,432 12,172,435 12,298,610 12,756,504 13,254,016 13,841,750 Non current assets

Long-term receiv ables 288,004 153,966 91,704 155,610 156,334 97,995 97,098 98,912 100,850

Inv estments 500,000 500,000 –

Inv estment property 333,376 328,510 328,723 314,825 317,904 323,348 318,000 312,677 307,380

Inv estment in Associate – – –

Property , plant and equipment 33,846,821 35,750,545 38,123,721 42,986,561 42,915,735 41,381,933 45,276,545 49,470,416 54,010,084

Agricultural –

Biological –

Intangible 662,070 692,355 773,544 686,584 685,736 687,646 700,292 714,579 726,629 Other non-current assets 5,977 4,899 5,734 98,731 98,731 249,249 274,174 301,591 331,750 Total non current assets 35,136,248 37,430,275 39,823,426 44,242,310 44,174,439 42,740,172 46,666,109 50,898,176 55,476,694 TOTAL ASSETS 46,380,427 48,933,836 52,987,242 57,241,742 56,346,874 55,038,782 59,422,613 64,152,193 69,318,443 LIABILITIES

Current liabilities

Bank ov erdraft 632,402 904,710 857,562 870,545 876,795 939,472 901,345 1,069,856 1,152,652 Borrow ing 773,025 957,999 993,039 1,095,000 1,095,000 1,095,000 1,051,195 1,065,753 1,078,868 Consumer deposits 1,081,004 1,293,879 1,533,178 1,314,873 1,336,657 1,609,865 1,691,240 1,776,028 1,865,076 Trade and other pay ables 5,274,218 5,903,002 7,061,447 5,483,596 5,454,272 6,053,773 6,367,255 6,442,747 6,681,141 Prov isions 297,982 210,751 250,238 293,848 293,848 293,848 288,145 282,435 276,839 Total current liabilities 8,058,631 9,270,341 10,695,464 9,057,861 9,056,571 9,991,958 10,299,180 10,636,818 11,054,575 Non current liabilities

Borrow ing 10,013,000 9,042,021 9,376,543 9,525,752 9,525,752 9,473,825 9,296,783 9,236,306 9,163,306 Prov isions 2,952,746 3,091,790 3,398,547 3,105,586 3,105,586 3,451,283 3,575,185 3,635,966 3,699,414 Total non current liabilities 12,965,746 12,133,811 12,775,090 12,631,338 12,631,338 12,925,108 12,871,968 12,872,272 12,862,720 TOTAL LIABILITIES 21,024,377 21,404,152 23,470,554 21,689,199 21,687,910 22,917,066 23,171,148 23,509,090 23,917,295 NET ASSETS 25,356,050 27,529,684 29,516,688 35,552,543 34,658,965 32,121,716 36,251,465 40,643,103 45,401,149 COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 12,544,057 15,222,036 15,957,810 22,371,697 22,356,344 20,235,113 24,621,011 29,188,852 34,166,003 Reserv es 12,811,993 12,307,648 13,558,878 13,180,846 12,302,621 11,886,603 11,630,454 11,454,252 11,235,145 Minorities' interests

TOTAL COMMUNITY WEALTH/EQUITY 25,356,050 27,529,684 29,516,688 35,552,543 34,658,965 32,121,716 36,251,465 40,643,103 45,401,149 2015/16 Medium Term Revenue &

Expenditure Framework Current Year 2014/15

The municipal equivalent of equity is Community Wealth/Equity. The justification is that ownership and the net assets of the municipality belong to the community.

Any movement on the Budgeted Financial Performance or the Capital Budget will inevitably impact on the Budgeted Financial Position. As an example, the collection rate assumption will impact on the cash position of the municipality and subsequently inform the level of cash and cash equivalents at year end. Similarly, the collection rate assumption should inform the budget appropriation for debt impairment which in turn would impact on the provision for bad debt.

These budget and planning assumptions form a critical link in determining the applicability and relevance of the budget as well as the determination of ratios and financial indicators. In addition the funding compliance assessment is informed directly by forecasting the statement of financial position.

TABLE A7 – BUDGETED CASH FLOW STATEMENT

The budgeted cash flow statement is the first measurement in determining if the budget is funded. It shows the expected level of cash in-flow versus cash out-flow that is likely to result from the implementation of the budget.

It can be seen that the cash levels of the city grew over the 2011/12 to 2013/14 period and is forecasted to drop for the 2014/15 financial year. The 2014/15 MTREF has been informed by the planning principle of ensuring adequate cash reserves over the medium-term. Cash and cash equivalents totals R 5.0 billion as at the end of the 2015/16 financial year and reduces to R 4.2 billion by 2017/18.

ETH eThekwini - Table A7 Budgeted Cash Flows

Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates, penalties & collection charges 4,462,666 4,987,887 5,452,688 5,481,368 5,285,026 5,429,152 5,639,962 6,002,123 6,417,052 Serv ice charges 11,428,037 12,467,301 13,112,696 14,790,650 14,986,779 14,359,476 16,047,785 17,749,848 19,656,604 Other rev enue 2,172,535 2,665,035 1,804,092 2,582,555 2,597,659 2,509,948 3,138,865 3,583,456 3,784,091 Gov ernment - operating 1,858,821 2,026,005 2,191,384 2,584,010 2,640,964 2,678,934 2,640,037 2,716,409 2,950,312 Gov ernment - capital 1,550,919 1,631,745 2,041,011 3,377,740 3,406,939 3,308,319 3,564,953 3,682,317 3,891,048 Interest 324,218 416,683 518,343 606,014 611,861 787,259 923,785 1,003,906 1,059,798

Div idends – – –

Payments

Suppliers and employ ees (16,189,330) (18,865,078) (19,052,173) (22,761,914) (23,281,911) (23,661,705) (24,347,449) (27,014,987) (29,489,758) Finance charges (872,091) (942,081) (857,206) (1,177,331) (1,177,331) (1,313,832) (1,427,941) (1,476,014) (1,507,353) Transfers and Grants (126,094) (171,574) (169,000) (205,214) (200,629) (194,933) (222,501) (236,503) (250,044) NET CASH FROM/(USED) OPERATING ACTIVITIES 4,609,681 4,215,923 5,041,836 5,277,879 4,869,356 3,902,618 5,957,494 6,010,555 6,511,750 CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 73,063 24,808 34,768 34,289 34,289 35,359 33,612 33,617 33,802 Decrease (Increase) in non-current debtors – (6,291) (898) (1,815) (1,939) Decrease (increase) other non-current receiv ables (12,179) (22,124) 65,832 – – – –

Decrease (increase) in non-current inv estments – – –

Payments

Capital assets (3,495,182) (2,900,368) (4,212,016) (5,711,021) (5,673,549) (5,673,548) (6,046,926) (6,435,351) (6,937,100) NET CASH FROM/(USED) INVESTING ACTIVITIES (3,434,298) (2,897,684) (4,111,416) (5,676,732) (5,639,260) (5,644,480) (6,014,212) (6,403,549) (6,905,237) CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – –

Borrow ing long term/refinancing 1,007,524 8,205 1,509,589 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Increase (decrease) in consumer deposits 62,522 62,522 76,687 81,374 84,788 89,048 Payments

Repay ment of borrow ing (431,450) (792,218) (1,140,027) (1,037,825) (993,039) (1,037,825) (1,190,563) (1,063,144) (1,076,667) NET CASH FROM/(USED) FINANCING ACTIVITIES 576,074 (784,013) 369,562 24,697 69,483 38,862 (109,189) 21,644 12,381 NET INCREASE/ (DECREASE) IN CASH HELD 1,751,457 534,226 1,299,982 (374,157) (700,421) (1,703,000) (165,906) (371,350) (381,106) Cash/cash equiv alents at the y ear begin: 3,274,026 5,025,483 5,559,709 5,522,459 5,522,459 6,859,693 5,156,692 4,990,786 4,619,436 Cash/cash equiv alents at the y ear end: 5,025,483 5,559,709 6,859,692 5,148,302 4,822,038 5,156,692 4,990,786 4,619,436 4,238,331

2015/16 Medium Term Revenue &

Expenditure Framework Current Year 2014/15

TABLE A8 – CASH BACKED RESERVES/ACCUMULATED SURPLUS RECONCILIATION

It is aligned to the requirements of the MFMA Circular 42. In essence the table evaluates the funding levels of the budget by firstly forecasting the cash and investments at year end and secondly reconciling the available funding to the liabilities/commitments that exist.

The outcome of this exercise indicates a surplus. This shows that the cash and investments available exceed the applications indicating compliance with the MFMA requirements that the municipality’s budget is “funded”. As part of the budgeting and planning guidelines that informed the compilation of the 2015/16 MTREF the end objective of the medium-term framework was to ensure the budget is funded aligned to section 18 of the MFMA.

ETH eThekwini - Table A8 Cash backed reserves/accumulated surplus reconciliation

Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Cash and investments available

Cash/cash equiv alents at the y ear end 5,025,483 5,559,709 6,859,692 5,148,302 4,822,038 5,156,692 4,990,786 4,619,436 4,238,331 Other current inv estments > 90 day s (0) (500,000) (500,000) 842,082 600,000 200,000 500,000 700,000 1,000,000 Non current assets - Inv estments – 500,000 500,000 – – – – – – Cash and investments available: 5,025,483 5,559,709 6,859,692 5,990,384 5,422,038 5,356,692 5,490,786 5,319,436 5,238,331 Application of cash and investments

Unspent conditional transfers 587,654 1,039,265 1,328,247 450,000 450,000 400,000 350,000 300,000 275,000 Unspent borrow ing – – – – – – – – – Statutory requirements

Other w orking capital requirements (680,367) (305,471) 568,994 (714,371) (490,594) 200,915 155,057 (232,785) (520,035) Other prov isions 360,406 376,574 328,341 357,068 357,068 380,665 381,983 383,991 386,730 Long term inv estments committed – – – – – – – – – Reserv es to be backed by cash/inv estments 2,918,735 3,242,219 3,333,129 3,478,169 3,475,669 3,611,570 3,712,369 3,855,294 3,941,951 Total Application of cash and investments: 3,186,428 4,352,587 5,558,711 3,570,867 3,792,144 4,593,150 4,599,409 4,306,500 4,083,646 Surplus(shortfall) 1,839,055 1,207,122 1,300,981 2,419,517 1,629,894 763,543 891,377 1,012,936 1,154,684

2015/16 Medium Term Revenue &

Expenditure Framework Current Year 2014/15

ETH eThekwini - Table A9 Asset Management

Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 CAPITAL EXPENDITURE

Total New Assets 2,349,384 2,009,269 2,570,040 3,902,965 3,972,112 3,972,112 3,117,307 3,500,606 3,708,000 Infrastructure - Road transport 288,059 572,174 205,714 30,601 124,584 124,584 176,972 217,448 83,588 Infrastructure - Electricity 349,281 263,561 282,467 378,972 378,972 378,972 419,055 477,224 487,960 Infrastructure - Water 13,000 132,699 555,131 673,250 673,250 673,250 642,675 706,335 738,828 Infrastructure - Sanitation 352,095 22,606 788,710 666,050 666,050 666,050 549,225 623,037 688,874 Infrastructure - Other 383,135 117,637 295,425 1,009,228 932,344 932,344 951,898 1,015,209 1,062,678 Infrastructure 1,385,570 1,108,677 2,127,446 2,758,101 2,775,200 2,775,200 2,739,826 3,039,253 3,061,927 Community 18,565 127,025 36,633 152,437 169,777 169,777 103,969 96,416 78,125 Heritage assets – 157 5,073 – – – – – – Inv estment properties 5,000 – – – – – – – – Other assets 888,174 734,182 396,391 989,727 1,024,435 1,024,435 271,357 362,680 567,897 Agricultural Assets – – – – – – – – – Biological assets – – – – – – – – – Intangibles 52,075 39,227 4,496 2,700 2,700 2,700 2,155 2,257 50

Total Renewal of Existing Assets 1,166,087 1,485,446 1,631,582 1,808,056 1,701,436 1,701,436 2,929,619 2,934,745 3,229,101 Infrastructure - Road transport 25,527 152,407 791,438 658,820 658,680 658,680 432,965 463,915 486,800 Infrastructure - Electricity 210,950 188,884 127,129 292,427 292,427 292,427 205,967 178,878 188,090 Infrastructure - Water 64,400 432,060 96,665 139,500 139,500 139,500 167,050 92,487 70,382 Infrastructure - Sanitation 206,000 211,946 27,540 25,700 25,700 25,700 6,844 17,215 2,428 Infrastructure - Other 200,053 – 158,785 94,210 25,063 25,063 1,319,013 1,277,707 1,325,450 Infrastructure 706,930 985,297 1,201,557 1,210,657 1,141,370 1,141,370 2,131,839 2,030,202 2,073,150 Community 55,016 39,367 55,148 120,598 120,598 120,598 184,725 304,561 495,317 Heritage assets 15,900 – 3,199 – – – – – – Inv estment properties – – – – – – – – – Other assets 382,741 428,784 367,510 474,101 436,858 436,858 613,055 599,982 660,634 Agricultural Assets – – – – – – – – – Biological assets – – – – – – – – – Intangibles 5,500 31,999 4,168 2,700 2,610 2,610 – – – Total Capital Expenditure

Infrastructure - Road transport 313,586 724,580 997,152 689,421 783,264 783,264 609,937 681,362 570,388 Infrastructure - Electricity 560,231 452,445 409,596 671,399 671,399 671,399 625,022 656,102 676,050 Infrastructure - Water 77,400 564,758 651,796 812,750 812,750 812,750 809,725 798,822 809,210 Infrastructure - Sanitation 558,095 234,552 816,250 691,750 691,750 691,750 556,069 640,252 691,301 Infrastructure - Other 583,188 117,637 454,210 1,103,438 957,407 957,407 2,270,911 2,292,916 2,388,128 Infrastructure 2,092,500 2,093,973 3,329,004 3,968,758 3,916,570 3,916,570 4,871,665 5,069,454 5,135,077 Community 73,581 166,392 91,782 273,035 290,375 290,375 288,694 400,977 573,442 Heritage assets 15,900 157 8,272 – – – – – – Inv estment properties 5,000 – – – – – – – – Other assets 1,270,915 1,162,966 763,901 1,463,828 1,461,293 1,461,293 884,412 962,662 1,228,531 Agricultural Assets – – – – – – – – – Biological assets – – – – – – – – – Intangibles 57,575 71,226 8,664 5,400 5,310 5,310 2,155 2,257 50 TOTAL CAPITAL EXPENDITURE - Asset class 3,515,471 3,494,715 4,201,622 5,711,021 5,673,548 5,673,548 6,046,926 6,435,351 6,937,100

Current Year 2014/15 2015/16 Medium Term Revenue &

Expenditure Framework

77 EXPLANATORY NOTES A9 – ASSETS MANAGEMENT

Table A9 provides an overview of municipal capital allocations to building new assets and the renewal of existing assets, as well as spending on repairs and maintenance by asset class. National Treasury has recommended that municipalities should allocate at least 40 per cent of their capital budget to the renewal of existing assets, and allocations to repairs and maintenance should be 8 per cent of PPE.

ETH eThekwini - Table A9 Asset Management

Description 2011/12 2012/13 2013/14

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Current Year 2014/15 2015/16 Medium Term Revenue &

Expenditure Framework

ASSET REGISTER SUMMARY - PPE (WDV)

Infrastructure - Road transport 3,102,765 3,827,345 8,271,104 4,355,599 4,355,599 4,449,442 5,059,380 5,740,742 6,311,130 Infrastructure - Electricity 5,906,128 6,361,574 4,507,125 6,936,476 6,936,476 6,936,476 7,561,498 8,217,600 8,893,650 Infrastructure - Water 6,610,996 7,175,754 1,912,606 8,663,284 8,663,284 8,663,284 9,369,750 10,134,178 10,920,993 Infrastructure - Sanitation 3,859,847 3,882,453 2,029,542 5,179,803 5,179,803 5,179,803 5,821,539 6,475,439 7,168,359 Infrastructure - Other 3,779,545 1,660,267 9,025,027 3,579,691 3,579,691 3,433,660 5,694,371 7,987,787 10,376,515 Infrastructure 23,259,281 22,907,394 25,745,404 28,714,853 28,714,853 28,662,665 33,506,538 38,555,746 43,670,648 Community 4,090,177 4,095,122 3,947,557 4,276,094 4,276,094 4,293,434 4,582,128 4,983,105 5,556,547 Heritage assets 9,501 9,658 10,512 12,509 12,509 12,509 12,509 12,509 12,509 Inv estment properties 333,376 328,510 328,723 314,825 317,904 323,348 318,000 312,677 307,380 Other assets 6,487,862 8,738,371 8,420,248 9,983,105 9,912,279 8,413,325 7,175,370 5,919,055 4,770,379 Agricultural Assets – – – – – – – – – Biological assets – – – – – – – – – Intangibles 662,070 692,355 773,544 686,584 685,736 687,646 700,292 714,579 726,629 TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 34,842,267 36,771,410 39,225,988 43,987,970 43,919,375 42,392,928 46,294,837 50,497,673 55,044,093 EXPENDITURE OTHER ITEMS

Depreciation & asset impairment 1,549,385 1,695,052 1,740,969 1,990,225 1,998,044 1,945,875 2,145,381 2,208,123 2,370,208 Repairs and Maintenance by Asset Class 1,821,525 2,311,701 2,483,448 3,101,050 3,071,121 3,137,329 3,152,219 3,388,292 3,645,758 Infrastructure - Road transport 339,933 416,094 398,829 480,954 480,615 479,881 509,360 525,006 527,935 Infrastructure - Electricity 390,249 609,037 721,282 834,949 834,949 832,249 897,549 968,509 1,045,099 Infrastructure - Water 396,483 479,465 496,809 526,666 526,666 543,486 584,483 617,214 670,837 Infrastructure - Sanitation 232,193 234,969 208,492 293,211 271,338 270,898 297,445 312,565 331,344 Infrastructure - Other 5,417 7,468 9,107 10,241 10,741 10,255 11,705 12,337 12,949 Infrastructure 1,364,275 1,747,033 1,834,520 2,146,022 2,124,310 2,136,769 2,300,542 2,435,631 2,588,164 Community 139,507 167,646 198,339 392,901 402,285 436,131 238,435 254,912 270,820 Heritage assets – – – – – – – – – Inv estment properties – – – – – – – – – Other assets 317,743 397,023 450,589 562,128 544,526 564,429 613,242 697,749 786,774 TOTAL EXPENDITURE OTHER ITEMS 3,370,910 4,006,753 4,224,417 5,091,275 5,069,164 5,083,204 5,297,600 5,596,415 6,015,966

Renewal of Existing Assets as % of total capex 33.2% 42.5% 38.8% 31.7% 30.0% 30.0% 48.4% 45.6% 46.5%

Renewal of Existing Assets as % of deprecn" 75.3% 87.6% 93.7% 90.8% 85.2% 87.4% 136.6% 132.9% 136.2%

R&M as a % of PPE 5.4% 6.5% 6.5% 7.2% 7.2% 7.6% 7.0% 6.8% 6.8%

Renewal and R&M as a % of PPE 9.0% 10.0% 10.0% 11.0% 11.0% 11.0% 13.0% 13.0% 12.0%

ETH eThekwini - Table A10 Basic service delivery measurement

2011/12 2012/13 2013/14

Outcome Outcome Outcome Original

Budget

Adjusted Budget

Full Year Forecast

Budget Year 2015/16

Budget Year +1 2016/17

Budget Year +2 2017/18 Household service targets

Water:

Piped w ater inside dw elling 614,000 614,000 634,367 650,000 650,000 653,548 662,000 670,000 678,000 Piped w ater inside y ard (but not in dw elling) 45,000 45,000 72,000 77,000 77,000 78,073 85,000 89,000 94,000 Using public tap (at least min.serv ice lev el) 213,000 213,000 234,000 239,000 239,000 235,932 242,000 245,000 249,000

Other w ater supply (at least min.serv ice lev el) –

Minimum Service Level and Above sub-total 872,000 872,000 940,367 966,000 966,000 967,553 989,000 1,004,000 1,021,000 Using public tap (< min.serv ice lev el)

Other w ater supply (< min.serv ice lev el) 74,000 74,000 80,000 75,000 75,000 73,447 72,000 77,000 80,000 No w ater supply

Below Minimum Service Level sub-total 74,000 74,000 80,000 75,000 75,000 73,447 72,000 77,000 80,000 Total number of households 946,000 946,000 1,020,367 1,041,000 1,041,000 1,041,000 1,061,000 1,081,000 1,101,000 Sanitation/sewerage:

Flush toilet (connected to sew erage) 517,000 517,000 504,367 524,000 524,000 519,661 540,000 555,000 567,000 Flush toilet (w ith septic tank) 37,000 37,000 112,000 132,000 132,000 125,525 145,000 159,000 175,000 Chemical toilet – – – – – – –

Pit toilet (v entilated) 113,000 113,000 120,000 115,000 115,000 118,027 112,000 110,000 107,000 Other toilet prov isions (> min.serv ice lev el) 44,000 44,000 82,000 80,000 80,000 105,943 78,000 75,000 72,000 Minimum Service Level and Above sub-total 711,000 711,000 818,367 851,000 851,000 869,156 875,000 899,000 921,000 Bucket toilet

Other toilet prov isions (< min.serv ice lev el) 235,000 235,000 202,000 190,000 190,000 171,844 186,000 182,000 180,000 No toilet prov isions

Below Minimum Service Level sub-total 235,000 235,000 202,000 190,000 190,000 171,844 186,000 182,000 180,000 Total number of households 946,000 946,000 1,020,367 1,041,000 1,041,000 1,041,000 1,061,000 1,081,000 1,101,000 Energy:

Electricity (at least min.serv ice lev el) 331,795 331,795 344,367 355,000 355,000 355,000 352,000 354,000 360,000 Electricity - prepaid (min.serv ice lev el) 305,000 305,000 313,000 318,000 318,000 318,000 324,000 328,000 336,000 Minimum Service Level and Above sub-total 636,795 636,795 657,367 673,000 673,000 673,000 676,000 682,000 696,000 Electricity (< min.serv ice lev el)

Electricity - prepaid (< min. serv ice lev el)

Other energy sources 345,000 345,000 363,000 368,000 368,000 368,000 385,000 399,000 405,000 Below Minimum Service Level sub-total 345,000 345,000 363,000 368,000 368,000 368,000 385,000 399,000 405,000 Total number of households 981,795 981,795 1,020,367 1,041,000 1,041,000 1,041,000 1,061,000 1,081,000 1,101,000 Refuse:

Remov ed at least once a w eek 982,000 982,000 1,020,367 1,041,000 1,041,000 1,041,000 1,061,000 1,081,000 1,101,000 Minimum Service Level and Above sub-total 982,000 982,000 1,020,367 1,041,000 1,041,000 1,041,000 1,061,000 1,081,000 1,101,000 Remov ed less frequently than once a w eek

Using communal refuse dump Using ow n refuse dump Other rubbish disposal No rubbish disposal

Below Minimum Service Level sub-total – – – – – – – – – Total number of households 982,000 982,000 1,020,367 1,041,000 1,041,000 1,041,000 1,061,000 1,081,000 1,101,000

Current Year 2014/15 2015/16 Medium Term Revenue &

Expenditure Framework Description

Dalam dokumen MEDIUM TERM REVENUE AND EXPENDITURE (Halaman 66-82)